The distribution of a dividend is often a decision criterion for shareholders when selecting shares. If a company pays out part of its profits as a dividend, this is usually done once a year in Germany and quarterly in the USA. In order to be a shareholder entitled to dividend certain cut-off dates must be observed.
What does dividend entitlement mean?
As Dividend entitlement is the right of a shareholder to receive a dividend when the company pays out a dividend. As an investor, it is important to note that there are different dividends depending on the country. Deadlines The dividend is calculated on the basis of the date on which the share must be held in the securities account in order to be entitled to a dividend.
Dividend record date in Germany
In Germany Dividends no later than the third business day after the Annual General Meeting paid out. The dividend resolution is passed at the Annual General Meeting.
The Day of the general meeting is considered at the same time Dividend record dateThe latest date on which the share must be purchased in order to be entitled to a dividend. On the day after the Annual General Meeting, the dividend is deducted on the ex-dividend day.
Dividend record date for foreign shares (USA)
Even in the case of foreign shares, a share must before ex day in the portfolio so that a shareholder can benefit from a dividend payout. Since, for example, in the USA dividends are usually distributed on a quarterly basis, however, it does not make sense to use the date of the Annual General Meeting as a reference.
Rather, the task here is to identify the so-called "Record Date" to note. In the USA, a person is entitled to a dividend if he or she owns the shares of the relevant company two days before the record date or one day before the ex date. The ex-dividend date is one day before the record date. (Since companies sometimes only publish the record date, it is necessary to be able to calculate the ex-date yourself).